According to the results of the 2016 Annual Survey of Economic
Activities Building, Construction and Real Estate Sectors released today
(November 30) by the Census and Statistics Department (C&SD), the
construction sector's total receipts (comprising gross value of
construction works performed and other business receipts) amounted to
$405.9 billion in 2016, representing an increase of 11.4% over 2015; on
a per establishment basis, total receipts increased by 7.4% compared
with 2015 to $16.8 million in 2016.

Operating expenses and compensation of employees of the
construction sector altogether amounted to $367.3 billion in 2016,
representing an increase of 10.0% over 2015; on a per establishment
basis, they increased by 6.1% compared with 2015 to $15.2 million in
2016.

Gross surplus of the construction sector, which is equal to total
receipts less operating expenses and compensation of employees,
increased by 26.5% over 2015 to $38.6 billion in 2016; on a per
establishment basis, gross surplus increased from $1.3 million in 2015
to $1.6 million in 2016. Gross surplus accounted for 9.5% of total
receipts in 2016, up by 1.1 percentage points over 2015.

Value added of the construction sector, which is a measure of its
contribution to Hong Kong's Gross Domestic Product, increased by
16.1% over 2015 to $126.3 billion in 2016; on a per establishment basis,
the value added was $5.2 million in 2016, representing an increase of
12.0% over 2015.

In 2016, there were some 24 200 establishments in the construction
sector, which directly engaged about 179 600 persons, or an average of
7.4 persons per establishment.

The survey did not cover labour-only sub-contractors that mainly
supplied labour to work on a job-to-job basis, owing to practical
consideration in data collection. The employment figures above mainly
covered direct employees of the construction establishments and did not
reflect the labour input through the sub-contracting activities of
labour-only sub-contractors.

Apart from the construction sector, the survey also enumerated
establishments engaged in real estate activities; and architectural,
surveying and engineering services.

Total receipts (comprising gross margin of real estate development
projects, service and rental income and other business receipts) of
establishments engaged in the real estate activities (including real
estate development, real estate leasing, real estate brokerage and
agency and real estate maintenance management) amounted to $194.2
billion in 2016, representing an increase of 6.0% compared with 2015.
Operating expenses and compensation of employees altogether amounted to
$75.8 billion in 2016, representing a decrease of 4.8% compared with
2015. Gross surplus increased by 13.0% compared with 2015 to $110.8
billion in 2016. Gross surplus accounted for 57.0% of total receipts in
2016, up by 3.5 percentage points compared with 2015. Value added
increased by 10.8% compared with 2015 to $140.3 billion in 2016.

In 2016, the real estate activities comprised 7 900 establishments
and engaged about 113 700 persons, or an average of 14.3 persons per
establishment.

The total number of private real estate projects ever operated in
2016 was 308. As at end-2016, 219 projects, which were expected to
provide a total 6.7 million square metres of gross floor area of
buildings when completed, were still under construction. Among them, 19%
were on Hong Kong Island, 31% in Kowloon and 50% in the New Territories
and outlying islands.

The survey excluded establishments which developed real estate
projects for their own use as well as those which owned land but had not
developed it during the reference year. Real estate leasing and other
related activities undertaken by individuals or firms which engaged less
than two persons (except for subsidiaries of real estate enterprises)
were also not covered in the survey.

Total receipts (comprising service income and other business
receipts) of establishments engaged in the architectural, surveying and
engineering services amounted to $21.7 billion in 2016, representing a
decrease of 2.2% compared with 2015. Operating expenses and compensation
of employees altogether amounted to $19.8 billion in 2016, representing
a slight increase of 0.7% over 2015. Gross surplus decreased by 25.3%
compared with 2015 to $1.9 billion in 2016. Gross surplus accounted for
8.6% of total receipts in 2016, down by 2.7 percentage points compared
with 2015. Value added decreased by 2.5% compared with 2015 to $15.1
billion in 2016.

In 2016, the architectural, surveying and engineering services
comprised some 2 000 establishments and engaged about 27 200 persons, or
an average of 13.6 persons per establishment.